Company XYZ Had a Long-Standing Relationship with a Leading Law

question 42

Multiple Choice

Company XYZ had a long-standing relationship with a leading law firm. In fact, the law firm's business with this company was one of its most profitable relationships. If the law firm decides that it no longer wants to conduct business with the company, this is:

• A) Indicative that the company might have a lot of customer lawsuits against it
• B) Not any sort of meaningful indicator of fraud activity
• C) A large cause for concern that financial statement fraud may be occurring
• D) An indication that the client has likely outgrown the law firm

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Definitions:

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes human needs from basic to self-fulfillment.

Physiological

Relating to the functions and processes that occur within living organisms, especially in terms of how they support life and health.

Esteem

The regard in which an individual or entity is held by others; often related to respect and admiration.

Level

A specific stage, degree, or magnitude in a series or system that signifies relative position or intensity.